The automotive industry in Michigan strongly criticized President Donald Trump's decision to keep existing U.S. trade tariffs on automotive imports at 25% after he granted a temporary delay to many other import measures.
Detroit Regional Chamber joined forces with MichiganAuto to warn that extended trade barriers would create problems for Michigan's essential complex global supply systems. The signature Michigan industry experiences ongoing uncertain times because traditional supply chains alongside their essential workforce remain at risk from unstable trade policies according to these joint industry statements.
Automotive industry leaders in Michigan have consistently warned about the negative effects of these tariffs which threaten global market positions and decrease employment levels. Furthermore the Trump administration maintains 25% tariffs on both aluminum and steel imports which automakers are currently paying.
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Trump announced on Wednesday that certain American companies might receive exemptions from the tariff program though he provided no information about whether automobile manufacturers qualified. The companies experience higher adverse impacts due to structural business factors. Trump responded to reporters that his administration would evaluate this case.
Michigan Governor Gretchen Whitmer urged the White House to entirely remove the auto and energy sectors from potential steel and aluminum trade restrictions. During her Washington visit Governor Gretchen Whitmer proposed exempting autos and energy sectors from the proposed tariff program because their impact on production and consumer finances.
Analysis shows that the economy will suffer impacts as a result of these developments. The Detroit-based automotive advisory firm projected this week that an intensified global trade war will eliminate 1.8 million vehicle sales throughout the U.S. and Canada during 2019 while affecting future market growth until 2030.
Trump’s auto import tariffs took effect April 3, impacting vehicles from Mexico and Canada. New tariffs on auto parts are scheduled to begin May 3. Stellantis has already announced temporary shutdowns at two plants in Mexico and Canada, leading to temporary layoffs at five connected U.S. facilities and affecting 900 workers. Other automakers are scaling back imports in response.